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PRESS RELEASE

PRESS RELEASE

Novavax Reports Fourth Quarter and 2006 Year-End Financial Results

ROCKVILLE, Md., March 14 /PRNewswire-FirstCall/ -- Novavax Inc.
(Nasdaq: NVAX) today announced financial results for the fourth quarter and
year ended Dec. 31, 2006. Novavax reported a net loss of $6.1 million ($0.10
per share) for the fourth quarter of 2006 compared to a net profit of $6.2
million ($0.13 per share) in the comparable quarter of 2005. For the year
ended Dec. 31, 2006, the Company reported a net loss of $23.1 million ($0.39
per share) compared to a net loss of $11.2 million ($0.26 per share) for the
comparable 2005 period. Both prior-year periods include a gain on the sale of
product assets in October 2005 related to the North American distribution
rights for ESTRASORB(R) totaling $10.1 million as well as a $1 million license
renewal fee received in December 2005 for rights on previously licensed
technologies in specific fields. Novavax ended fiscal 2006 with $73.6 million
in cash and investments compared to $31.9 million as of Dec. 31, 2005. Among
key achievements in 2006, Novavax:

-- Demonstrated the efficacy and cross-protection of the Company's virus-
like particle (VLP) vaccines for both pandemic and seasonal influenza
in relevant pre-clinical models.
-- Submitted key pre-clinical data for publication in peer-reviewed
journals for both pandemic and seasonal influenza VLP vaccines.
-- Filed several patents to bolster intellectual property protection for
the Company's VLP platform technology.
-- Developed a manufacturing process and analytical tools for the
Company's VLP vaccines that we believe are reproducible and of
consistent high quality to meet rigorous FDA standards.
-- In collaboration with the National Institutes of Health, identified a
clinical candidate for a VLP vaccine candidate targeting HIV for
further development by the NIH.
-- Signed a licensing agreement with a third party to further develop
Novavax's topical testosterone product candidate for the treatment of
female sexual dysfunction.
-- Strengthened the Company's balance sheet by raising $58 million in two
separate equity financing transactions and reduced convertible debt by
$7 million.

"2006 was a transitional period for Novavax," said Novavax Chief Executive
Officer Dr. Rahul Singhvi. "We believe our activities in 2007 will continue
our ambitious agenda. By consolidating our vaccine operations in a new state-
of-the-art facility in Rockville, Maryland, we remain on track with our goal
to advance our first vaccine into human trials. We are now in a position to
evaluate other infectious disease targets that will enable our scientific team
to expand our pipeline of vaccine candidates."

Preparations are under way for Novavax to enter human clinical trials with
its VLP vaccine for pandemic influenza later this year. In addition, pre-
clinical work has begun on the Company's VLP vaccine for seasonal influenza.
"Our goal is to begin toxicology studies with the seasonal influenza vaccine
in the second half of this year," Dr. Singhvi said, noting that these studies
are required prior to beginning human clinical trials.

"We also are aggressively assessing new opportunities to leverage our VLP
platform technology," Dr. Singhvi said. "We plan to identify a minimum of one
new disease target later this year to focus our research and development
efforts. We are eager to apply our VLP approach to new, important disease
targets, which will enable us to build out our product pipeline."

2006 Financial Results

Revenue for the fourth quarter ended Dec. 31, 2006 was $1.3 million
compared to $2.2 million for the same period in 2005 reflecting the receipt of
a $1 million license renewal fee in December 2005. Revenue for the full year
2006 totaled $4.7 million compared to $7.4 million for the year ended Dec. 31,
2005, a decrease of $2.7 million or 37 percent. The primary reason for this
decrease in revenue was the divestiture of assets related to the Company's
vitamin and AVC product lines in September 2005 and the licensing of exclusive
North America rights to market ESTRASORB to Esprit Pharma, Inc. in October
2005. Revenue for the full year 2005 included sales totaling $1.6 million
from products divested in September 2005. This decline in revenue reflects
our corporate strategy of transitioning from a specialty pharmaceutical
company that was previously focused on women's health products to an
innovative biopharmaceutical company that is now developing novel vaccines
against infectious diseases including pandemic and seasonal influenza.

Cost of products sold, which relate to Novavax's legacy products,
ESTRASORB and Gynodiol, totaled $1.4 million in the fourth quarter of 2006
compared to $717,000 in the same prior year period. Cost of products sold in
the fourth quarter of 2006 included $0.7 million attributed to idle
manufacturing capacity compared to similar costs of $0.3 million in the fourth
quarter of 2005. The Company incurred $0.3 million in excess inventory costs
over market for the fourth quarter of 2006 compared to $1.5 million in similar
costs in the fourth quarter of 2005, reflecting excess production costs over
the sales price of ESTRASORB to Esprit Pharma under the October 2005 Supply
Agreement. Costs of products sold for the year ended Dec. 31, 2006 were $4.9
million, compared to $5.8 million in 2005. Cost of products sold for the year
ended Dec. 31, 2006 included $2.5 million in idle capacity costs at the
Company's manufacturing facility compared to $3.2 million for the comparable
period in 2005. The Company incurred $1.5 million in excess inventory costs
over market in each 12-month period ended Dec. 31, 2006 and 2005. Factors
contributing to the decrease in cost of products sold in 2006 were lower
production volumes, the divestiture of product assets in September 2005, and
lower Gynodiol product sales in 2006.

Research and development costs for the fourth quarter of 2006 were $3.2
million compared to $1.3 million in the fourth quarter of 2005. For the full
year, research and development costs increased 127 percent to $11.5 million in
2006 from $5.1 million in 2005. These increases were due to higher research
and development spending to support the Company's strategic focus on creating
differentiated, value-added vaccines that leverage its proprietary VLP
technology. Research and development costs were significantly higher in 2006
due to increases in personnel, facility costs and outside expenses (including
sponsored research and consulting agreements) associated with expanded
preclinical testing and process development, manufacturing and quality-related
activities necessary to move the Company's influenza vaccine candidates into
clinical testing. Also contributing to this increase was the recognition of
$0.5 million of non-cash compensation costs resulting from the implementation
of SFAS No. 123R in 2006, using the modified prospective method, while no
costs were recorded in 2005.

General and administrative costs were $3.3 million in the 2006 fourth
quarter compared to $2.0 million in the year-earlier period. General and
administrative costs for the year ended Dec. 31, 2006 were $11.2 million
compared to $8.1 million in 2005. General and administrative costs for the
2006 fourth quarter and full year included $0.2 million and $1.2 million,
respectively, in non-cash (stock-based) compensation costs in accordance with
SFAS 123R. Other factors contributing to these increases were higher
personnel, legal and consulting costs related to the Company's VLP-based
vaccine development programs. The Company took steps to strengthen its
intellectual property portfolio and initiated business development and
commercial assessment activities related to its new vaccine development
programs.

Selling and marketing expenses were $101,000 for the year ended Dec. 31,
2006 compared to $6.9 million in 2005. This decrease of $6.8 million was due
to the Company's change in strategic focus from a commercial business model to
one focused on the Company's developing novel vaccines against infectious
diseases. With the sale of our vitamin and AVC product lines in September
2005 and the licensing of exclusive North American rights to market ESTRASORB
in October 2005, our ongoing selling and marketing expenses in 2006 consisted
primarily of costs related to sales of Gynodiol. These ongoing costs should
be minimal in the future.

Other operating costs and expenses in 2005 included gain on sales of
product assets totaling $11.0 million consisting of a $10.1 million gain from
the licensing of exclusive North American marketing rights for ESTRASORB in
October 2005 and a $0.9 million gain from the divestiture of assets related to
the Company's vitamin and AVC product lines in September 2005.

Interest income, net of interest expense was $1.2 million higher in the
fourth quarter of 2006 and $3.5 million higher for the full year when compared
with the comparable prior-year periods. These increases were due primarily to
higher investment balances resulting from $73.0 million in net proceeds from
three equity financing transactions during the fourth quarter of 2005 and the
first quarter of 2006 coupled with lower interest expense on the Company's
outstanding senior convertible notes due to the voluntary conversion of $6.0
million (October 2005) and $7.0 million (March 2006) face amount of the
Company's 4.75% senior convertible notes. These voluntary conversions reduced
the Company's outstanding senior indebtedness from $35.0 million to $22.0
million as of Dec. 31, 2006.

Conference Call

Novavax's management will host its quarterly conference call at 10:00 a.m.
Eastern time (7:00 a.m. Pacific time) today. The live conference call will be
accessible via Novavax's website at http://www.novavax.com under
Investor/Events or by telephone at 1-800-811-8824 (U.S. or Canada) or
1-913-981-4903 (International). An archive of the conference call will be
available on Novavax's website approximately one hour after the event for 90
days. A replay of the conference call will also be available by telephone
beginning March 14 at noon. To access the replay, dial 1-888-203-1112 and
enter passcode 3056084.

About Novavax

Novavax Inc. is committed to leading the global fight against infectious
disease by creating novel, highly potent vaccines that are safer and more
effective than current preventive options. Using the Company's proprietary
virus-like particle (VLP) and Novasome(R) adjuvant technologies, Novavax is
developing vaccines to protect against H5N1 pandemic influenza, seasonal flu
and other viral diseases. Novavax's particulate vaccines closely match
disease-causing viruses while lacking the genetic material to cause disease,
which provides potential for greater immune protection at lower doses than
current vaccines. With an exclusive portable manufacturing system that allows
for rapid mass-production of vaccines, Novavax is uniquely positioned to meet
global public health needs.

Forward Looking Statements

Statements herein relating to future financial or business performance,
conditions or strategies and other financial and business matters, including
expectations regarding future revenues, product safety or efficacy, patent
protection, operating expenses, and clinical developments are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act.
Novavax cautions that these forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time. Factors that
may cause actual results to differ materially from the results discussed in
the forward-looking statements or historical experience include risks and
uncertainties, including the failure by Novavax to secure and maintain
relationships with collaborators; risks relating to the early stage of
Novavax's product candidates under development; uncertainties relating to
clinical trials; risks relating to the commercialization, if any, of Novavax's
proposed product candidates; dependence on the efforts of third parties;
dependence on intellectual property; competition for clinical resources and
patient enrollment from drug candidates in development by other companies with
greater resources and visibility; and risks that we may lack the financial
resources and access to capital to fund our operations. Further information
on the factors and risks that could affect Novavax's business, financial
conditions and results of operations, is contained in Novavax's filings with
the U.S. Securities and Exchange Commission, which are available at
www.sec.gov. These forward-looking statements speak only as of the date of
this press release, and Novavax assumes no duty to update forward-looking
statements.